Q. My company is headquartered in San Francisco, but I have several employees throughout California, including in Los Angeles. What are my obligations with regard to the new Los Angeles minimum wage ordinance?
A. Under the Los Angeles minimum wage ordinance, there are different standards for employers with 26 or more employees and those with 25 or fewer employees.
Employers that have 26 or more employees must pay a minimum wage of $10.50 beginning July 1, 2016. This rate will increase annually until it reaches $15 in 2020.
Employers with 25 or fewer employees will be one year behind that schedule, paying a minimum wage of $10.50 beginning in 2017 and reaching $15 in 2021.
To determine how many employees you have, average the number of employees employed in the city of Los Angeles during the previous calendar year.
According to the definition supplied by the law, an employee is an individual who “performs at least two hours of work within the geographic boundaries of the City for an Employer” per week.
That definition is crucial to understanding your obligations under the law. It means that an employer outside of Los Angeles may be required to pay some employees the Los Angeles minimum wage rate.
Final note: As of now, the ordinance only applies to the city of Los Angeles itself, not the entire county. Be sure to stay up-to-date on the law, as a countywide minimum wage is currently in the works.
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